Rwanda Dairy Competitiveness Program II Quarterly Report July 1– September 30, 2013

The program was designed to link existing and new smallholder dairy producers to expanding market demand driven by improved quality, reduced transaction costs, and increased investment along the dairy value chain. National Dairy Strategy validation and incorporation into the Strategic Plan for the Transformation of Agriculture in Rwanda – Phase III (PSTA III) and the Economic Development and Poverty Reduction Strategy (EDPRS 2) were key highlights for the past year ending September 2013. The National Dairy Strategy (NDS) was validated by the Agriculture Sector Working Group (ASWG) on April 23, 2013, and is now the guiding document for development of Rwanda's dairy sector for the next five years. The Seal of Quality Program was launched in collaboration with the Ministry of Agriculture and Animal Resources (MINAGRI) directorate of Rwanda Agriculture and Livestock Inspection Services (RALIS) on May 3, 2013. The program aims to improve milk quality and facilitate the transition from the informal market to the formal market. Testing and pre-auditing of recipients commenced in the last quarter, and Ministerial Instructions relating to quality regulations were prepared and sent to MINAGRI for internal review. Food Safety Management Systems (FSMS) training was facilitated for 16 staff from implementing agencies of MINAGRI, RALIS, and RAB. The training provided by the Rwanda Bureau of Standards (RBS) prepared the core teams from these agencies to serve as inspectors and auditors in the dairy value chain. This critical skill was previously lacking in the above institutions and is essential for implementation and monitoring of best milk quality practices in Rwanda. The Rwanda National Dairy Board institutional framework was reviewed, and an appropriate roadmap for restructuring was approved. This followed a critical analysis of the role anticipated of the dairy board vis-a-vis its current status. The proposed roadmap necessitated support to the Private Sector Federation of Rwanda (PSF), which will be the eventual host institution for the new Rwanda National Dairy Platform (RNDP). USAID approved a grant for RNDP through PSF in September 2013, and requisite documentation for grant disbursement is being processed. The Dairy Public-Private Dialogue was introduced into the Milk Sheds where RDCP II is operating. The forums were hosted jointly between RAB, RDB, and provincial administrators for public and private dairy stakeholders to discuss both the NDS and sector challenges specific to each milk shed. This was an opportune moment for dairy sector leaders to gain empowerment with the endorsement of government leaders, namely the Governors, District Mayors, and private sector supporters. This culminated in the constitution of milk-shed working groups that have been tasked with facilitating dairy dialogue on an ongoing basis. The program has made significant progress in linking smallholder dairy producers to expanding market demand, improving milk quality, and facilitating the transition from the informal market to the formal market. The Seal of Quality Program, FSMS training, and Dairy Public-Private Dialogue are key initiatives that have contributed to these achievements. The program's success has been recognized through the validation and incorporation of the National Dairy Strategy into the Strategic Plan for the Transformation of Agriculture in Rwanda – Phase III and the Economic Development and Poverty Reduction Strategy (EDPRS 2).